If you’re importing or exporting street lights, you need to know the proper Harmonized System (HS) code. I’ll explain why and give you a couple of reviews.
HS codes are standardized numerical classifications used worldwide to identify products in international trade. Having the right HS code on your street lights helps them fly through customs, gets them cleared, and makes sure you’re paying the right tariffs.
For LED lights—including street lights, flood lights, and pretty much any other kind of light fixture—the go-to classification is as follows:
HS Code 9405.40.90.
That’s right. My review is for an HS code because most of the countries I work with use the HS code.
What is an HS Code?
I’m not sure if you’re familiar with HS codes. HS stands for Harmonized System. It’s a universal classification system that helps governments and businesses track and regulate international trade. Every single product that gets shipped across borders is assigned an HS code. That code determines the duties, taxes, and regulations that apply to that product. That’s what an HS code is in a nutshell.
The Importance of HS Codes in the Street Lighting Industry
Here’s the bottom line: if you’re importing a bunch of street lights for your city or if you’re exporting the newest LED street lights, you need to know the right HS code. If you don’t have your street lights classified correctly, if they’re not classified as street lights, you’re going to run into delays, trouble, problems, fines, or even have your stuff rejected at customs.
Common HS Codes for Street Lights
Let’s look at the most relevant HS codes you need to know for street lighting equipment.
1. HS Code 9405: Lamps and Lighting Fittings
General Overview: HS Code 9405 covers a wide range of lamps and lighting fittings, including street lights, spotlights, searchlights, and more. It is a broad category used for various lighting products. This code is often the starting point for classifying lighting equipment.
Why It’s Important: This HS code applies to most conventional street lights, especially if they aren’t powered by advanced technologies like LED or solar panels.
2. HS Code 940540: Electrical Lighting Equipment
Specific to LED Lights: HS Code 940540 is more targeted and applies to electrical lighting or signaling equipment, such as LED street lights. As the street lighting industry shifts towards energy-efficient and eco-friendly solutions, this code has become increasingly important.
- Common Uses: This code is frequently used for LED street lights, both for commercial and residential applications.
- Benefits: LED lights are known for their long lifespan and energy efficiency, making them a popular choice for cities and towns looking to upgrade their street lighting systems.
Example: If you are importing solar-powered LED street lights, this is the code you will most likely use.
3. HS Code 94054090: LED Street Lights and Solar Lighting
More Specific Classification: For those in the LED street light market, HS Code 94054090 is the go-to classification. This code is typically used for LED-based lighting solutions, including solar-powered models.
- What It Covers: This HS code specifically applies to the import and export of LED street lights, with a particular focus on integrated systems that might include solar panels.
- Why It’s Important: The solar-powered street lighting market is growing rapidly. Cities around the world are turning to solar energy to power their street lights, and using the right HS code ensures that your solar-powered lights are properly classified for international shipping.
Pro Tip: Ensure that if you're importing solar-powered LED street lights, you mention both the lighting system and the solar component to avoid misclassification.
4. HS Code 94051090: Traditional Street Lights
For Non-LED Lights: Not all street lights are LED-based, and some municipalities still use traditional lighting systems. If you're dealing with non-LED street lights, such as halogen or incandescent systems, HS Code 94051090 may apply.
- What It Covers: Traditional street lighting systems that do not use advanced LED or solar technology.
- Why It’s Important: For importers or exporters still working with conventional lighting systems, this HS code will ensure proper classification and tariff application.
Key Considerations for Importers and Exporters
1: Use the right HS codes. If you don’t use the right code, you’re going to have to pay the tariffs, you’re going to have to pay the fines, you’re going to have customs problems, and you’re probably going to have delays. There is no good reason to not use the right code.
2: You need to stay updated. Tariffs change all the time. Product classifications change all the time. As technology evolves, classifications evolve. Look at the rules with agencies like customs and with compliance officers, and with CPAs or international tax people, because that’s where you’re going to get all the most up-to-date information.
3: A perfect example in the U.S. happened about 2 years ago. A solar guy came to me. He was trying to import solar-powered LED street lights. The customs broker wouldn’t release his stuff because the customs broker wasn’t 100% sure that these were lights. They were solar panels. There was no tariff on solar panels. There was a very different tariff if they were classified as lights. You have to be careful. When you’re doing something complicated like a solar-powered LED street light, the paperwork that you give the UPS person or the DHL person or God forbid that you do the paperwork yourself, has to be spot on because you get risk. All that risk is in your documents.
Conclusion
The first thing you have to do is you have to figure out what HS code your product goes under. If you mess that up, it’s going to go bad for you, especially if you send goods from China to the United States or China into Europe or wherever. When you use the wrong code, really terrible things can happen. You have to use the right code. Check with a customs broker or a CPA or an international tax pro. You have to make sure you use the right code.
